A document issued by the local government that certifies a new home’s compliance with local building codes. Certificates of occupancy prove that a newly constructed home or building is in livable condition. A licensed inspector that works for the local government will inspect the home and provide a certificate of occupancy to give mortgage lenders assurance that the home is in a safe and livable condition. Certificates of occupancy are required for any kind of newly constructed building or before a building can be converted from a commercial to a residential building.